Report Shows 84 Percent of Crypto Projects Have Centralization Issues

Only a handful of crypto projects live up to Satoshi’s vision. Statistically speaking, 85 percent of cryptocurrency projects are still influenced by their developers

Wed, 17/10/2018 - 15:38

Report Shows 84 Percent of Crypto Projects Have Centralization Issues

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While decentralization is generally viewed as the most salient feature of cryptocurrencies, a newly published report by CryptoCompare reveals that only a handful of crypto projects live up to Satoshi’s vision. Statistically speaking, 85 percent of cryptocurrency projects are still influenced by their developers who have the power to alter the protocol of a certain coin in accordance with their own needs.

Furthermore, the abovementioned report also shows that centralization is becoming even more rampant due to the utility tokens. As U.Today reported earlier, EOS, the fourth biggest coin by market cap, is becoming even more decentralized with 100 holders controlling 69 percent of the total supply.

Another significant revelation is that the majority of cryptocurrencies are securities (which echoes Gary Gensler’s recent statement).

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About the author

Alex Dovbnya

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.